How to see the true cost of care for new clients, contracts and council tenders using Care Control

The social care sector in the UK faces mounting financial strain. Costs are climbing faster than funding, and local authorities, providers and families are all feeling the impact.

Funding isn’t keeping pace with demand

According to The King’s Fund, local authority spending on adult social care reached £32 billion in 2023/24, with demand and complexity continuing to grow. Yet despite this, many councils report budget shortfalls, with some warning that services are becoming unsustainable. Rising energy prices, insurance costs, and workforce pressures mean that care homes are operating on increasingly tight margins.

The Health Foundation estimates that maintaining current levels of service could require an additional £3.4 billion by 2028–29,  a figure that underlines just how urgent the funding gap has become.

In 2023, the CQC has also raised concern that financial pressures are beginning to compromise quality, with providers forced to make difficult choices on staffing and investment. In their latest State of Care report, the Commission noted that “the combination of the cost-of-living crisis and workforce shortages risks creating unfair care and longer waits for people who need support.”

Behind the national numbers lies a very human story: every decision about care costs affects people – service users, families and care teams. The challenge isn’t just about money; it’s about sustainability, quality and transparency.

 

The operational reality for providers

For care providers, these national pressures show up in daily operations – rising agency costs, difficulty recruiting, fluctuating occupancy levels, and the growing administrative load that comes with evidencing value. When budgets tighten, providers are often forced to make tough choices: where to allocate staff time, which improvements to delay, and how to stay compliant without overspending. It’s a balancing act that demands real visibility into every cost.

 

Yet for many providers, understanding where money actually goes is harder than it should be. Traditional budgeting tools and spreadsheets rarely show the full picture. Averages hide nuances, indirect costs go untracked, and “guesstimates” replace insight.

That’s where data-driven solutions, like Care Control, are starting to transform care. Tools that link dependency levels, staffing time and resource use to real costs are giving care leaders the clarity they need to make informed decisions.

And that’s exactly what the Cost of Care and Dependency Tool in Care Control was designed to do.

 

Do you really know where your money is going?

 

Hidden costs that go unnoticed

Hidden costs exist everywhere in care delivery – from unrecorded overtime and staff training to unplanned agency shifts or duplicated tasks. Many of these aren’t visible in traditional budgets but have a major impact on sustainability.

Why visibility matters

A study by Skills for Care found that turnover and recruitment costs alone amount to over £3 billion per year across the sector. When combined with escalating energy and food prices, even small inefficiencies quickly add up. That’s why understanding where your money is really going is no longer a “nice to have” – it’s essential for long-term viability.

The challenge for care leaders

Rising bills. Staffing shortages. Pressure to prove value for money. Running a care service today can feel like spinning plates while the costs keep climbing. But here’s the real challenge: without full visibility of the true cost of care, you’re often left guessing. Estimates, spreadsheets, averages – they can all hide the real picture. And that’s where budgets slip and confidence takes a hit.

A smarter way to manage costs

That’s why Care Control Cloud includes the Cost of Care and Dependency Tool – designed to take away the guesswork and give you clarity where it matters most.

The cost-of-living crisis has intensified these pressures. According to Care England, energy bills for care homes rose by an average of 350% between 2021 and 2023. Insurance premiums, food costs and pension contributions continue to climb, while local authority rates often fail to keep pace.

With margins shrinking, leaders need to know exactly where their funding goes – not just broadly, but in real, measurable terms. That’s where Care Control’s Cost of Care and Dependency Tool makes a difference: it turns complex data into clear insight, helping you understand the true financial footprint of your care delivery.

 

What the Cost of Care tool does:

This is not just another report. It is a clear, evidence-based breakdown of your real costs across your whole service and for every person you support.

 

How it works:

By linking each service user’s dependency level directly to the staff time and resources they need, the tool turns care reviews into powerful cost insight.

No complicated spreadsheets. No manual calculations. Just an instant, transparent view of exactly where your money is going.

In 2025, the NHS Digital Social Care Records programme and Care Data Matters strategy both emphasise the importance of accurate, real-time data in care decision-making. Having access to digital tools that link financial data with care delivery not only improves transparency but also helps providers demonstrate accountability to funders and regulators.

The Cost of Care and Dependency Tool in Care Control empowers providers to make informed, evidence-based choices – whether planning rotas, justifying funding requests or evidencing the link between dependency and resource use during inspections.

 

 

Why it matters:

When every pound counts, clarity is everything.

✅ See the true cost of supporting each service user

✅ Plan staffing and budgets with complete confidence

✅ Build evidence for funding reviews and compliance

✅ Make decisions that are transparent and reliable

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For many care providers, funding reviews and contract negotiations hinge on demonstrating clear cost evidence. The Market Sustainability and Fair Cost of Care Fund now requires local authorities in England to carry out cost of care exercises and publish their findings – showing how provider fee rates compare to the actual cost of delivering care.

Authorities must also publish cost of care reports and market sustainability plans for their areas, ensuring transparency and alignment between what’s paid and what’s needed to deliver sustainable services.

That’s where digital tools like Care Control’s Cost of Care and Dependency Tool make a real difference. Instead of retrofitting data for these funding exercises, you already have accurate cost insight at your fingertips – with the option to instantly print detailed cost reports for evidence and review. Whether you’re preparing for a local authority meeting, inspection, or internal audit, your financial data is ready to share, accurate, and fully transparent.

When you can clearly demonstrate your costs and dependency levels, you don’t just improve efficiency – you strengthen your position in funding discussions and build confidence in the value of your care.

 

The impact  for your service

This is about more than numbers. It’s about clarity, control, and confidence. With the right data at your fingertips, you can make decisions that protect your budget, support your teams, and prove the value of the care you deliver every day.

Imagine being able to see exactly how every hour of care, every shift and every dependency level contributes to your bottom line. That level of clarity transforms financial planning into a proactive process. It allows managers to identify where to invest, where to adjust, and how to justify every decision with confidence.

It also creates transparency for everyone involved in your service, from local authorities and funders to the people you support and their families. It shows that your organisation delivers exceptional care with accountability, efficiency and genuine value.

 

The bigger picture:  future-proofing your care service

The future of social care will depend on data-driven decision-making. As workforce costs rise and funding becomes more closely linked to measurable outcomes, providers who can clearly demonstrate efficiency and quality will be best placed to thrive.

Digital care systems are not just about convenience; they are about resilience. They reduce manual workload, support compliance and give leadership teams insight that helps prevent overspending.

Tools like Care Control’s Cost of Care and Dependency feature bring together operational and financial perspectives, allowing managers to plan staffing, forecast costs and evidence value in a single system.

In an unpredictable economy, clarity is not optional; it is protection. When you can see exactly where your money is going, you can plan for the future with confidence.

 

Ready to see more?

Every decision in care has both a human and financial impact. The right digital tools make it possible to manage both, ensuring that care quality remains high even when resources are stretched.

Care Control’s Cost of Care and Dependency Tool gives you the data you need to make decisions that are transparent, defensible and effective.

Book your free demo today and see how Care Control helps you understand your true costs, plan more effectively and protect your financial sustainability for the future.

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